Infracapital, the infrastructure equity investment arm of M&G
Investments, announces that it has agreed to sell 100% of the equity of
Calvin Capital ("Calvin"), a leading provider of gas and electricity
meters to energy suppliers in the UK, to KKR, a leading global
Financial terms were not disclosed and the transaction is expected to
complete at the end of January 2017.
Calvin has grown significantly since Infracapital's original investment
in 2007 and has to date financed the procurement and installation of
over six million meters, including c. two million smart meters, which
allow consumers to better manage their energy use and energy companies
to better manage their customer relationships.
With the support of KKR as its new shareholder, Calvin will continue to
play a key role in the UK Government's plans to install a smart meter in
every home and business in Great Britain by 2020. The company has
already secured contracts for over eight million smart meters in total.
Martin Lennon of Infracapital said:
"Since Infracapital created the Calvin Capital business it has
experienced incredible growth to become a leading meter asset provider
with significant smart meter contracts secured. This transaction is
testament to entrepreneurial spirit and hard work of both the
Infracapital and Calvin teams. We are confident that Calvin will
continue to flourish under its new ownership and we wish the business
and all its employees every success in the future."
Jesus Olmos, Member & Global Co-Head of Infrastructure of KKR, said
"We are delighted to be partnering with an exceptional business such as
Calvin, which benefits from strong market positioning thanks to its
exceptional management team, effective asset management and tried,
tested & scalable IT systems. Calvin is perfectly positioned to support
the UK Government's plan to further roll out smart meters thanks to its
strong track record of delivery and strong relationships with the UK's
leading energy suppliers."
Jim Macdonald, CEO of Calvin Capital, said:
"This is another substantial milestone for Calvin, reflecting our
success in building a leading UK provider of smart meters with
significant further growth potential. Smart meters play a crucial role
in energy efficiency and improving affordability for customers and the
support of a leading global investor such as KKR will allow us to
further strengthen our platform and enhance our offering. We are very
grateful for the support provided by Infracapital, our customers and
lenders over the last 10 years and are excited to be working with KKR
through the next phase of our growth."
- Ends -
Infracapital is a leading European infrastructure investor, and is part
of M&G Investments, the European investment management arm of Prudential
plc. Infracapital has raised and managed over £2.4 billion across four
European infrastructure funds to date, and has a team of over 30
professionals with investment, management and operational expertise.
Infracapital's approach to investment offers long-term value through the
acquisition and active management of a diversified portfolio of core
European infrastructure assets in both the operating and greenfield
space. Target sectors include utilities, essential transportation,
renewables and communications infrastructure.
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and
on Twitter @KKR_Co.
About Calvin Capital
As one of the largest independent Meter Asset Providers ("MAP") in Great
Britain, Calvin finances the provision and installation of electricity
and gas metering meters on behalf of energy suppliers as well as
managing the meter portfolio. Since its inception in 2002, the company
has financed the procurement and installation of six million domestic
meters, investing nearly £600 million. As a market leading MAP Calvin is
ideally positioned to support energy suppliers in meeting their smart
meter roll-out obligations and has already secured contracts for over
eight million smart meters.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161206006093/en/
Tom Murray/ Latika Shah
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